Multiple Choice
The money supply in Macroland is currently 2,500,bank reserves are 200,currency held by the public is 500,and the banks' desired reserve-deposit ratio is 10%.Assuming that the values of currency held by the public and the desired reserve-deposit ratio do not change,if the Central Bank of Macroland wishes to increase the money supply to 3,000,then it should conduct an open-market _________ government bonds to/from the public.
A) purchase of 50
B) purchase of 250
C) purchase of 500
D) sale of 50
E) sale of 500
Correct Answer:

Verified
Correct Answer:
Verified
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